CMFAS RES 1A Market Conduct question: information-connected test

Answer: B. May escape liability, because for a non-connected person the prosecution must prove he actually knew the information was non-public and price-sensitive

For a non-connected person under SFA s.219, liability requires proof that he knew the information was not generally available and was price-sensitive. A tippee who genuinely did not know its character may fall outside the prohibition, although the court will test that claim against the circumstances. The presumption of knowledge in s.218 applies only to connected persons.